Cheesecake Factory (CAKE) Q2 Earnings Top on Solid Comps
The Cheesecake Factory Incorporated’s CAKE quarterly results continue to be aided by robust same-store sales. CAKE’s second-quarter results also reflected improving consumer demand, new restaurant openings and robust off-premise sales.
It reported mixed second-quarter results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, the top and bottom lines increased 69.2% and 4% year over year, respectively.
Robust Comps Growth Drives Q2 Results
In the reported quarter, comps at Cheesecake Factory restaurants rose 1.5% year over year compared with 4.7% in the prior-year quarter. Comps grew 14.1% from 2019 levels. Our model predicted the metric to improve 3.4% year over year.
For the 26-week ended Jul 28, 2023, comps at Cheesecake Factory restaurants increased 3.6% year over year.
North Italia comps gained 8% year over year compared with 12% in the year-ago quarter. The metric increased 30% compared with 2019 levels. Our model suggested the metric to rise 7.5% year over year.
CAKE’s comp growth in second-quarter 2023 was driven by strong pricing. Management said that pricing was nearly 10.5% for the quarter. However, menu mix and traffic were (5.4%) and (3.7%) year over year.
The company witnessed exceptional sales volume during quarter. Cheesecake Factory is committed to bolstering sales to stay afloat in the competitive environment. Notably, menu innovation and advanced digital capabilities are primary fortes of the company.
The Cheesecake Factory Incorporated Price, Consensus and EPS Surprise
The Cheesecake Factory Incorporated price-consensus-eps-surprise-chart | The Cheesecake Factory Incorporated Quote
Zacks Rank
Cheesecake Factory currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Few Recent Retail-Wholesale Releases
Builders FirstSource BLDR reported second-quarter 2023 results, wherein earnings and net sales outpaced the Zacks Consensus Estimate. However, both metrics dipped on a year-over-year basis. A more stable housing environment, strong value-added product portfolio and positive impacts of operational initiatives implemented in recent years backed the uptrend partially offset by declining single-family starts and commodity deflation.
BLDR’s consistent focus on operational excellence, strength of its product portfolio, continued investments in value-added products, productivity initiatives and digital solutions are expected to help it navigate the challenging macroeconomic conditions.
YUM! Brands, Inc. YUM reported mixed second-quarter 2023 results, with earnings outshining the Zacks Consensus Estimate but revenues missing the same. The top and bottom lines improved on a year-over-year basis.
YUM’s quarterly results reflected robust same-store sales and unit growth resulting in a rise in revenues across its operating divisions. Worldwide system sales, excluding foreign currency translation, gained 13% year over year, with Taco Bell, KFC and Pizza Hut jumping 7%, 19% and 7% year over year, respectively.
Starbucks Corporation SBUX reported mixed third-quarter fiscal 2023 results, with earnings outperforming the Zacks Consensus Estimate but revenues lagging the same. The top and bottom lines increased on a year-over-year basis.
SBUX’s focus on progress in Reinvention Plan, innovative beverage and equipment rollouts boded well. Also, solid recovery in China added to the uptrend. These, in turn, resulted in growth in comparable store sales and net-new store on a year-over-year basis.
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